Opinion by
Defendant, Bachelor Gulch Metropolitan District (Bachelor Gulch), appeals the district court's orders awarding attorney fees and costs under 42 U.S.C. § 1988 to two groups of plaintiffs (plaintiffs), namely, Beaver Creek Property Owners Association, Inc. (Beaver Creek) and Strawherry Park at Beaver Creek Property Owners Association, Inc. and certain of its owners (collectively, Strawberry Park). We conclude that the district court erred in awarding attorney fees to Beaver Creek in connection with federal constitutional claims that Beaver Creek added after the district court ruled in its favor on the principal substantive issue in the case. We further conclude that the district court did not err in finding that Strawberry Park's constitutional claims were substantial enough to warrant an award of attorney fees and costs. Accordingly, we reverse the orders as to Beaver Creek, affirm as to Strawberry Park, and remand for a determination of the amount of reasonable appellate fees to be awarded to Strawberry Park.
I. Background
When Vail/Arrowhead, Inc. (Vail) began developing the Strawberry Park subdivision, it agreed not to route any of its construction traffic through the Beaver Creek subdivision. Instead, Vail sent all of its construction traffic over a road in the neighboring community of Bachelor Gulch.
As pertinent here, in April 2006, Bachelor Gulch enacted a road regulation that effectively banned Strawberry Park subdivision construction traffic from its roads. Plaintiffs and others then sued Bachelor Gulch, asserting various state law claims and seeking a permanent injunction and a declaration that the regulation was invalid and unenforceable on state law grounds. Vail and Strawberry Park also brought federal constitutional claims under 42 U.S.C. § 1983, with Vail alleging that the regulation violated its rights to equal protection and to travel and Strawberry Park alleging that the regulation vio
In February 2007, plaintiffs moved for partial summary judgment on their declaratory judgment claims. Vail did not file its own motion for partial summary judgment, but filed a "Final Statement of Position," which supported the grant of summary judgment declaring that Bachelor Gulch roads were open to Strawherry Park construction traffic.
The court granted plaintiffs' motion, holding that the regulation was invalid on state law grounds. Notably, in its order, the court twice observed that in ruling as it did, it was avoiding potential constitutional questions. Based on this ruling, the court ultimately granted a permanent injunction prohibiting Bachelor Gulch from enforcing the traffic regulation.
In October 2007, after the court had held that the traffic regulation was invalid and unenforceable but before the court entered the permanent injunction, Beaver Creek moved to amend its original pleadings to add, among other claims, a section 1983 claim challenging the traffic regulation on substantive due process and equal protection grounds. The district court granted Beaver Creek's motion to amend, although it later dismissed Beaver Creek's (and Strawberry Park's) constitutional claims as moot because, among other things, it had already invalidated the regulation on state law grounds.
Thereafter, Vail, Beaver Creek, and Strawberry Park moved for awards of attorney fees and costs under 42 U.S.C. § 1988. The court granted the motions and awarded fees and costs totaling $954,221.
Bachelor Gulch appealed these awards but later settled with Vail. Accordingly, only the awards of fees and costs to Beaver Creek and Strawherry Park are now before us.
II. Applicable Law
Section 1988(b) provides, in pertinent part, "In any action or proceeding to enforce a provision of [section 1983 or various other statutes], the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs...." In determining whether fees are awardable under this statute in connection with a section 1983 elaim, courts look to the substance of the underlying federal or constitutional claim, rather than how it might be labeled in the complaint. See, e.g., Americans United for Separation of Church & State v. School Dist.,
In addition, when a party joins state law and constitutional claims but prevails only on the state law claims, a court may still award attorney fees under section 1988 if the constitutional claim was "substantial" and the state law claim arose from a common nucleus of operative facts. See Maher v. Gagne,
To the extent a plaintiff joins a claim under one of the statutes enumerated in [seetion 1988] with a claim that does not allow attorney fees, that plaintiff, if it prevails on the non-fee claim, is entitled to a determination on the other claim for the purpose of awarding counsel fees. Morales v. Haines,486 F.2d 880 (7th Cir.1973). In some instances, however, the claim with fees may involve a constitutional question which the courts are reluctant to resolve if the non-constitutional claim is dispositive. Hagans v. Lavine,415 U.S. 528 ,94 S.Ct. 1372 ,39 L.Ed.2d 577 (1974). In such cases, if the claim for which fees may be awarded meets the "substantiality" test, see Hagans v. Lavine, supra; United Mine Workers v. Gibbs,383 U.S. 715 ,86 S.Ct. 1130 ,16 L.Ed.2d 218 (1966), attorney's fees may be allowed even though the court declines to enter judgment for the plaintiff on that claim, so long as the plaintiff prevails on the non-fee claim arising out of a "common nucleus of operative fact." United Mine Workers v. Gibbs, supra, at 725,86 S.Ct. 1130 .
H.R. Rep. No. 94-1558, at 4 n. 7.
In Hagans,
The limiting words "wholly" and "obviously" have cogent legal significance.... [TJhose words import that claims are constitutionally insubstantial only if the prior decisions inescapably render the claims frivolous; previous decisions that merely render claims of doubtful or questionable merit do not render them insubstantial.... A claim is insubstantial only if "its unsoundnéss so clearly results from the previous decisions of this court as to foreclose the subject and leave no room for the inference that the questions [sic] sought to be raised can be the subject of controversy."
Id. at 537-38,
This relatively low bar for establishing substantiality is consistent with Congress's intention that a party who succeeds in enforcing his or her civil rights "should ordinarily recover an attorney's fee unless special cireumstances would render such an award unjust." See Newman v. Piggie Park Enterprises, Inc.,
III. Beaver Creek's Fee Award
Bachelor Gulch first contends that the district court erred in awarding attorney fees to Beaver Creek because Beaver Creek did not add its section 1983 claims until after the district court had granted partial summary judgment for plaintiffs. Beaver Creek responds that it is entitled to recover the fees because its constitutional claims related back to the date of its original filings under C.R.C.P. 15. We agree with Bachelor Gulch.
A. After-Filed Claims
As noted above, a party may recover fees under section 1988 when it has pled a substantial constitutional claim, even if it did not specifically label the properly pled claim as a constitutional claim arising under section 1983 in its complaint, and even if the party never obtained a ruling on that claim. See Maher,
Moreover, allowing a plaintiff to assert new constitutional claims only after it prevails in order to create a basis for seeking a fee award would contravene basic notions of fairness and due process. Among other things, such a practice would deprive opposing parties of an opportunity to factor into their case analyses their exposure to a fee award, as well as the opportunity to litigate the constitutional claim and perhaps avoid an adverse fee award. We decline to endorse such a practice.
Nor have we seen any authority supporting Beaver Creek's contention that it can recover attorney fees under section 1988 as long as it could have brought a section 1983 claim, regardless of whether it actually did so. To the contrary, as noted above, Maker,
Beaver Notwithstanding the foregoing, Creek argues that it is entitled to recover fees because (1) the relation back doctrine applies, (2) it amended its complaint before the court granted the permanent injunction, thus rendering the amendment timely, and (8) the other plaintiffs in this case asserted constitutional claims. these assertions in turn. We reject each of
B. Relation Back
Although Beaver Creek's amended complaint may have satisfied the technical requirements of C.R.C.P. 15's relation back doctrine, Beaver Creek cites no applicable authority, and we are aware of none, that supports its contention that the relation back doctrine may be used to create a post hoe basis for an award of attorney fees under section 1988. "Relation back is intimately connected with the policy of the statute of limitations." Fed.R.Civ.P. 15 advisory committee notes on 1966 amendment. When the rules governing the relation back of claims are satisfied, neither of the policies underlying statutes of limitations, namely, evidentia-ry concerns and repose, is implicated. Admiral Ins. Co. v. Abshire,
Wilson v. Goldman,
Contrary to Beaver Creek's assertions, Wilson is inapplicable for two reasons. First, in Wilson, the claim for a violation of the protective covenants, which supported the fee award, was included in the plaintiff's original complaint. Here, in contrast, Bea
The division's decision in Brossia v. Rick Construction, L.T.D. Liability Co.,
Although the Brossias' amended complaint may relate back to their original complaint for some purposes under C.R.C.P. 15(c), we conclude that it does not relate back here for the particular purpose of validating, after the fact, the Brossias' otherwise invalid recording of their lis pendens.
Id.
Applying similar reasoning, other courts have likewise concluded that the relation back doctrine is inapplicable when the purpose is other than to avoid an expired statute of limitations. Seq, e.g., Farber v. Wards Co.,
We are persuaded by these cases and, applying their rationale here, conclude that Beaver Creek may not rely on the relation back doctrine to establish, after the fact, a basis for seeking attorney fees.
C. Timeliness of Beaver Creek's Added Claim
With respect to Beaver Creek's contention that its added section 1983 claim was timely because it amended its complaint before the district court granted the permanent infunetion, we note that the grant of the permanent injunction was based on the court's previous grant of partial summary judgment, which was entered some fourteen months before Beaver Creek sought to amend its complaint. Accordingly, we reject Beaver Creek's suggestion that it added its section 1983 and underlying constitutional claims before the district court had decided the primary issue in this case.
D. Constitutional Claims of Other Parties
With respect to Beaver Creek's contention that it may recover attorney fees under seetion 1988 because other parties properly as
For these reasons, we conclude that the district court erred in awarding Beaver Creek attorney fees in connection with constitutional claims that were filed after the court had invalidated the traffic regulation.
IV. Strawberry Park's Fee Award
Bachelor Gulch next argues that the district court erred in awarding Strawberry Park its attorney fees because Strawberry Park's constitutional claims were not sufficiently "substantial." Specifically, Bachelor Gulch contends that the district court erred in finding that Strawberry Park's constitutional claims were substantial merely because they would survive a motion to dismiss for failure to state a claim. Although our analysis differs in some respects from that of the district court, we perceive no reversible error.
A. Amicus Brief
As an initial matter, we note that amici have submitted a brief arguing, among other things, that the Hagans substantiality test should not apply in this case. Because Bachelor Gulch does not assert this argument on appeal, we will not consider it. (Gorman v. Tucker,
B. Applicable Law
As noted above, the legislative history of section 1988 makes clear that a prevailing party is eligible to recover attorney fees under that section if it pled a "substantial" section 1983 or constitutional claim, even if it did not specifically label the properly pled claim as a constitutional claim arising under section 1983 in its complaint, and even if the district court ultimately did not rule on that claim. Congress further made clear that "substantiality" for purposes of section 1988 would be determined under the standard set forth in Hagans,
Although Bachelor Gulch and Strawherry Park generally agree on these standards, they disagree as to how the standards should be applied here. Specifically, Bachelor Gulch contends that (1) "obviously frivolous" and "obviously without merit" are not necessarily synonymous; (2) just because a claim is sufficient to survive a motion to dismiss for failure to state a claim does not automatically render it substantial under the Hagans test, cf. Neitzke v. Williams,
Strawherry Park takes the opposite positions. Specifically, it contends that (1) "obviously frivolous" and "obviously without merit" have been used interchangeably; (2) if a claim is sufficient to survive a motion to dismiss for failure to state a claim, it necessarily satisfies the Hagams test; and (3) it is proper to look beyond the face of the complaint to determine if a claim is sufficiently substantial under Hagans.
We agree in part with both Bachelor Gulch and Strawherry Park on these points. Specifically, we agree with Strawberry Park that courts appear to have used "obviously frivolous" and "obviously without merit" interchangeably. See, e.g., Hagans,
Accordingly, we must determine whether, in light of both Strawberry Park's allegations amd the evidence produced in the district court, Strawherry Park's constitutional claims were substantial under Hagans. We conclude that they were.
C. Application
To establish a claim under 42 U.S.C. § 1983, a party must allege that the defendant acted under color of state law and deprived him or her of a right, privilege, or immunity secured by the federal constitution and laws. See Int'l Soc. for Krishna Consciousness,
To establish a substantive due process claim under section 1983, a party must show a violation of the component of the Due Process Clause that protects individuals against arbitrary governmental action that deprives them of life, liberty, or property, whether the fault lies in a denial of fundamental procedural fairness or in the exercise of power without any reasonable justification in the service of a legitimate governmental objective. Cnty. of Sacramento v. Lewis,
To establish an equal protection claim under section 1983, a party must show that the defendant acted under color of state law to create a classification that "arbitrarily single[(d] out a group of persons for disparate treatment" and did not treat similarly situated people in the same manner. Ewy v. Sturtevant,
Both Bachelor Gulch and Strawberry Park agree that Strawberry Park's due process and equal protection claims here are subject to the rational basis test. Under this standard, Strawberry Park was required to establish that the traffic regulation at issue and the classification that it allegedly established lacked a rational relationship to a legitimate governmental purpose. See Washington v. Glucksberg,
Here, Bachelor Gulch does not appear to dispute that Strawberry Park's allegations were sufficient to state viable substantive due process and equal protection claims. Rather, it asserts that the very face of Strawberry Park's complaint shows that its constitutional claims were obviously without merit, because Strawberry Park's own allegations show that Bachelor Gulch had legitimate safety concerns for taking the actions that it did. Bachelor Gulch also presented evidence to support these assertions.
Strawberry Park responds that Bachelor Guleh's actions in enforcing the traffic regulation were "arbitrary, capricious and irrational, undertaken with bad faith pre-textual motives, and [were] intentionally and deliberately done for the purpose of denying [Straw
Thus, we are confronted with a substantial evidentiary record in which both sides presented evidence tending to support their respective positions. In light of this record, and fully recognizing that a plaintiff seeking to invalidate a regulation on rational basis grounds faces an uphill battle, we cannot conclude that Strawherry Park's constitutional claims were "obviously without merit," as Bachelor Gulch contends.
Accordingly, we conclude that Strawherry Park's constitutional claims were sufficiently substantial under Hagans to warrant an award of attorney fees under section 1988.
V. Appellate Fees
Both Beaver Creek and Strawberry Park seek an award of appellate fees under C.A.R. 39.5 and section 1988. For the reasons set forth above, Beaver Creek's request is denied, and Strawberry Park's request is granted. We exercise our discretion under CAR. 89.5 and remand this case to the district court for a determination of the amount of the reasonable appellate fees to be awarded to Strawberry Park.
VI Conclusion and Remand Order
For these reasons, the orders are reversed as to Beaver Creek and affirmed as to Strawberry Park, and the case is remanded for a determination of the amount of the reasonable appellate fees to be awarded to Strawberry Park.
